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News

Avista plans to acquire Boston Scientific’s Fluid Management and Venous Access businesses

Boston Scientific : 14 December, 2007  (New Product)
Boston Scientific and Avista Capital Partners, a leading private equity firm, have signed a definitive agreement under which Avista will acquire from Boston Scientific its Fluid Management and Venous Access businesses for $425 million in cash.
The transaction is expected to close in the first quarter of 2008, subject to regulatory approvals and customary conditions. Boston Scientific previously announced its intent to sell these businesses as part of its plan to divest non-strategic assets.

Avista said that upon close of the transaction, the combined Fluid Management/Venous Access business will operate as an independent company under a new name. Ron Sparks, an Avista healthcare industry advisor, will become chairman and chief executive officer of the new company. Dave McClellan, president of Boston Scientific's Oncology business, will become president of the new company.

The Fluid Management franchise, formerly North American Medical Instruments Corporation (NAMIC), produces a range of products used to manage fluid and measure pressure during angiography and angioplasty procedures. The Fluid Management franchise employs approximately 750 people in its Glens Falls, New York manufacturing facility in the USA.

The Venous Access franchise, whose products are also manufactured in Glens Falls, offers a leading portfolio of implantable devices designed to provide access to the blood stream for patients requiring intravenous antibiotics, nutrition, chemotherapy and blood sampling. The Venous Access franchise is part of Boston Scientific's Oncology business, and employs approximately 150 people in locations around the USA.

Projected revenue for the two businesses in 2007 is approximately $170 million.

'We now have under agreement the divestitures of all five non-strategic businesses we had previously identified for sale,' said Jim Tobin, president and chief executive officer of Boston Scientific. 'In addition, our expense and head count reduction initiative is well under way, and we continue to make progress monetizing our investment portfolio and restructuring several businesses. These measures should help us further our overall goals of restoring profitable growth, increasing shareholder value and continuing to strengthen Boston Scientific for the future.'

oston Scientific has also recently announced agreements to sell its Cardiac Surgery, Vascular Surgery and Auditory businesses.

'Boston Scientific's Fluid Management and Venous Access businesses maintain strong leadership positions in their respective markets and are recognised for benefiting interventional cardiologists, radiologists and oncologists, and their patients,' said David Burgstahler, a partner at Avista Capital Partners. 'Furthermore, given his extensive experience in the medical device field, Ron Sparks is a great fit to drive growth for the combined business going forward.'

'We are very excited about this transaction,' added Larry Pickering, Avista Capital Partners' healthcare industry partner. 'The Fluid Management franchise has exceptional brands and a cutting-edge manufacturing facility at Glens Falls with unique custom kitting capabilities. The Venous Access business has robust R&D capabilities, a knowledgeable sales force and a strong new product introduction track record, which should continue to propel organic growth.'

'I am eager and delighted to work with the existing Fluid Management and Venous Access teams to build on their leading franchises in oncology, radiology and interventional cardiology to create a world-class, stand-alone medical device company,' said Ron Sparks. 'We want to recognize the important work these teams have done in developing these franchises, as well as the valuable role we expect them to play going forward.'

'This is an exciting time for Fluid Management and Venous Access, and we are thrilled to be joining the talented Avista team as we develop a strategy to drive long-term growth and expand our businesses,' said Dave McClellan.

'We greatly appreciate the contributions our Fluid Management and Venous Access employees have made to Boston Scientific,' added Tobin. 'We wish them continued success in providing customers and patients with quality products and innovative therapies.'

Fluid Management/Venous Access will be Avista's fifth investment in the healthcare industry. In 2007, Avista made healthcare investments in BioReliance and VWR International and in 2006 Avista announced investments in Nycomed and MedServe. While at DLJ Merchant Banking Partners, the Avista partners were involved in numerous healthcare transactions including Accellent, Charles River Laboratories, Focus Diagnostics, KCI, Prometheus Labs and Warner Chilcott.
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